Policies and Procedures

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Doc Number CORP-00-11-01-00
Revision: 1
Fair Competition and Trade Practices Policy
Approved & Released Policies
and Procedures
World Wide
Type of Document:
Implementation Date: 10/11/2010
Review Period - 728 Days
1.0. Purpose
Cummins Inc. is a global company that is committed to full compliance with the letter and
spirit of the laws and regulations of all countries in
which we do business. This includes
laws and regulations regarding fair competition and trade practices. These laws (also called
“antitrust” or
“competition” laws) are meant to ensure fair competition in the
marketplace and impact most aspects of our business, including pricing, sales, and our
relationships with competitors, partners, distributors, dealers, agents, representatives,
advertisers, contractors, suppliers and customers.
These laws generally regulate three types of conduct:
Restrictive agreements or practices;
Abuse of market power; and
Mergers, acquisitions and joint ventures.
These laws are strictly enforced around the world and carry both criminal and civil penalties.
Cummins employees, regardless of their geographical location, must be aware of and abide
by all applicable fair competition laws, regulations, and this policy.
2.0. Scope of Policy
This policy applies to the employees of Cummins Inc. entities worldwide in which Cummins
has a controlling ownership interest or management responsibility including subsidiaries,
joint ventures or affiliated companies. If Cummins does not have a controlling ownership
interest or management responsibility in the subsidiary, joint venture or affiliated company
Cummins will take reasonable steps to require that the entity comply with this policy and
applicable laws and regulations. Further, Cummins will take actions to require third parties
that act on our behalf, such as sales representatives and commercial agents, to abide by all
applicable laws and regulations.
3.0. Policy
Cummins is committed to full compliance with all applicable fair competition laws and
regulations wherever we do business. We will always compete energetically and fairly for
business and strive to maximize returns for our shareholders. However, we must compete in
full compliance with the law and our Code of Business Conduct and we believe that we will
thrive in a marketplace free of collusion and anticompetitive practices. This policy is a
statement of our commitment and provides guidance to our employees as to how to comply.
Cummins recognizes that the complexity of these laws can make compliance difficult.
Therefore, this policy attempts to give you guidance as well as the information you need to
get assistance or additional information if necessary.
No employee should at any time take any action or agree to take any action on behalf of
Cummins that he or she knows or has reason to suspect violates any applicable law,
regulation or this policy.
In all your dealings on behalf of Cummins, be guided by the following rule: Whenever you
are in doubt, consult with the Law Department at the earliest possible time.
Following are the primary tenets of our policy.
3.1. We are committed to compliance: Under the Cummins Code of Business Conduct,
one of our 10 Ethical Principles is “we will compete fairly and honestly.” Our commitment to
compliance extends from the most senior management to all of our employees throughout the
world. Cummins recognizes that compliance is not only required by law, it also makes good
business sense. Cummins management will maintain a corporate culture that requires
compliance and encourages employees to raise compliance concerns to the highest levels of
the Company without fear of retaliation. We will also provide training and guidance to our
employees to ensure they understand, and know how to comply with, the applicable laws,
regulations, and our policies.
3.2. We will not engage in unfair competition or trade practices and we will ensure that
our actions comply with the letter and spirit of the law:
In our dealings with competitors, distributors, dealers, suppliers, contractors, advertisers,
customers and others we will follow the law and avoid actions (whether written agreements
or oral agreements) that could be construed as anticompetitive. For example:
We will not engage in anti-competitive dealings with competitors such as price fixing,
customer/market apportioning (such as agreeing with a
customer to stay away from each
other’s market areas or customers), exchanging price, cost, or other commercially sensitive
cartels, bid rigging, group boycotts, or coordinated price increases;
We will not discuss with competitors confidential business matters such as pricing,
supplier costs and terms, discounts or production data
and we will avoid all
conversations or actions that could suggest that we are engaging in anticompetitive behavior;
We will not “signal” competitors regarding pricing strategies or changes and will not
use customers or third parties to send a message about
pricing or how we think the
industry should behave;
We will not engage in anti-competitive dealings with customers or resellers (including
distributors and dealers) such as setting fixed or
minimum resale prices, illegal
price discrimination, tying arrangements (making the sale of one product conditional on the sale
of another
product), cartels, bid rigging, group boycotts or unlawful resale
Where we have a superior market position, we will not abuse that position or engage in
any anticompetitive behavior. Examples include :
tying, exclusivity, fidelity or
loyalty rebates and discounts, discriminatory pricing or unlawful monopolies;
 We will deal with suppliers, contractors, advertisers, distributors, dealers and other
customers fairly and in a manner that best advances the competitiveness of our
products and services;
 We will ensure that all mergers, acquisitions, joint ventures and other business
combinations are reviewed by the Law Department at an early stage and are in full
compliance with all competition laws; and
 We will avoid informal contact with competitors to the extent feasible and will ensure
that planned interactions with competitors are reviewed in advance by the Law
You should contact the Law Department if you are unsure whether a communication,
conversation, action or potential action would constitute a violation of the law or this policy.
In addition to these general guidelines, we have developed the Cummins Fair Competition
Compliance Manual which forms a part of this policy and provides detailed information for
complying with fair competition laws around the world. A link to the Manual is attached
4.0. Where To Go For More Information and Assistance
All employees are required to comply with the provisions of this policy and the applicable
fair competition laws throughout the world. You may find additional information on this
policy and the applicable laws, including a copy of the Cummins Fair Competition
Compliance Manual, by going to MyCummins, clicking on the Tools and Resources page,
choosing Legal Services, and going to the Compliance section.
Depending on your role, you may be required to complete face–to-face and/or online
compliance training on competition laws. Successful completion of this training is
mandatory and a condition for continued employment.
5.0. How to Report Potential Violations of this Policy or other Concerns
If you become aware of any action that you believe is not consistent with this policy, the law
or the Cummins Code of Business Conduct, you are required to seek assistance. You can
seek assistance by contacting:
your supervisor;
your Business leader;
Human Resources; or
the Cummins Law Department.
To contact the Law Department in your region, go to MyCummins, click on the Tools and
Resources page, choose Legal Services, and go to the Contact information section. There
you will find contact information for the Law Department. If you are not sure which lawyer
to contact, simply send a Lotus Note to “Law Department” and you will be contacted by the
appropriate person.
6.0. Company Ethics Help Line
If for any reason you are not comfortable taking your concerns to any of the above
departments or individuals, you may report any concerns regarding this policy to EthicsPoint,
our third party reporting service. You can access the EthicsPoint website by typing
"ethics.cummins.com" on your internet browser. You can register your concerns online
through this website or you may call and report via telephone. This site will provide you
with a phone number for reporting concerns in your country or you may call the United
States number at 1-800-671-9600.
Cummins prohibits retaliation and no action will be taken against you for reporting your
concerns. If you wish, you may report your concerns anonymously.
7.0. Company Resources
These laws are complicated and we do not expect employees to be experts in this area.
Cummins has additional training materials on fair competition laws. If you are an employee
who is involved with the marketing, sales or purchasing of products or services, you need to
make sure that you are familiar with the law and with Company policy. If you believe you or
others need additional training or information, please contact the Cummins Law Department
to arrange training. The Company will provide you with the information that you need.
8.0. Annual Ethics Certification
All Cummins employees who must complete the Annual Ethics Certification must certify
their compliance with this policy.
Associated Documents:
Associated Quality System Documents - None
CORP-00-02-00-00 -- Corporate Purchasing Policy
CORP-00-02-02-04 -- Supplier Code of Conduct
Cummins Code of Business Conduct
Cummins Fair Competition Compliance Manual